LendingTree’s Home Loans, Mortgage and Refinance Reviews

January 3, 2011 1 Comment »

LendingTree’s home loans, mortgages and refinance rates are generally offered with much lower interest rates and APRs than other financial and lending institutions. Today, when reviewing some of the mortgage rates from their network you’ll see that you can lock in a 30 year fixed rate mortgage for an APR of 4.64%, a 15 year fixed rate mortgage with an APR of 3.99% and a 5/1 ARM mortgage  with an APR of 3.25%.

Although their APRs are generally enticing, they seem to simultaneously receive a somewhat high rate of complaints online. The complaints usually stem from customer service (specifically – waiting time for mortgage and home loan closing, lack of customer service agents handling client demand, and frequent transfers of representatives). Here are two recent reviews from customers around the web:

Review #1 – Good Rating: “We refinanced our mortgage through Lending Tree.  It was so fast, so easy!  It was almost a little scary!  We filled out forms, faxed over some w2′s and other statements and before I could call for the status, our loan was approved!  Now that won’t happen in everyone’s case (depends on the credit history and score, of course)  but this was very easy.  I am confident we got a good rate too.” – Mortgage Refinance Customer

“I chose Lending Tree to refinance my house because of their catchy ad tag — “When lenders compete, you win.”  After the death of my husband, I wanted to combine my 30 year fixed-rate mortgage and my 10 year, interest-only balloon equity line into one fixed-rate mortgage.

Review #2 – Poor Rating: After submitting my basic application, I was contacted by Lending Tree and was surprised to be told that they no longer “shop” mortgages to other lenders.  The “specialist” who called me said she would be working with me from start to finish and assured me that this would work in my favor.  After reviewing the information on my house and my credit report, she also assured me that the refinance would go through without a hitch and she could start the paperwork as soon as I authorized a $600.00 credit card payment to Lending Tree.  This would become part of my closing costs.  The only way I would forfeit this money would be if my home appraisal came in too low.  I naively complied.

Well, guess what?  The appraiser sent out by Lending Tree valued my house almost $40,000 too low for the amount of money I need to borrow!  According to the Lending Tree specialist, this was based on sales of comparable homes on streets “near me” I have never heard of.  I have found homes like mine within 1/2 mile that sold for the price I need to show; but these were just internet or newspaper items, not the official MLS listings.  According to Lending Tree, I can appeal the appraisal if I – with no assistance from Lending Tree – can find MLS listings (from whom?) of three comparable homes that sold in the last six months for the price I say my home is worth.

Meanwhile, I have never seen the appraisal in writing, I’m out $600.00, and the sweet-sounding specialist has stopped returning my calls or responding to my e-mails.”- LendingTree Refinance Customer (Mortgage reviews found at ViewPoints.com)

Summary of LendingTree’s Mortgage Refinancing and Home Loan Process:

LendingTree.com is a free, no-obligation service which they claim “will empower you to take control of your financial life.” They have  interactive tools, personalized advice and comprehensive resources customers can use to manage their finances. If you’re looking for a loan, they can connect you with multiple lenders who’ll compete for your business and provide customized loan offers. If you need help with your finances, they have a suite of tools and personalized advice for users to budget their money, get out of debt, and boost their savings.

How does LendingTree.com make money?

Banks and Lenders pay LendingTree.com for the chance to compete for your business. And if you decide to take out a loan through LendingTree’s services, you’ll be responsible for paying any loan processing, closing costs or other fees to the lender you choose and LendingTree will be paid from the institution for sending them your business.

LendingTree Quick Facts:

- coverage in 50 states.

- Over 200 lenders competing against each other in real time with real offers.

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  • Mike

    I got screwed out of $400 with lendingtree. The lender lendingtree sent me to had me get my home appraised then wouldn’t make the loan with me. I also later found out the appraisal wasn’t even required for the particular type of mortgage I was trying to receive.